Once lotro character screen is loaded then everything works fine and it flickers back to regular display...

Funny thing is, if i screenshot or use snipping tool it shows no error.

Any ideas?

I doubt this has much of anything to do with ISBoxer or Inner Space, since you said it doesn't show up if you take a screenshot. For example, if I physically punch a hole in my display and then take a screenshot on the computer, it's not going to show any damage whatsoever, simply because the GPU is still outputting the correct signal, and the issue lies with the display itself.

So, my guess would be either failing hardware or something else that is happening to your display when its trying to interpret a signal from the GPU.